October 12, 2021 — Letter

The National Consumer Law Center (on behalf of its low-income clients) and the Center for Responsible Lending write to express serious concerns about two actions that the CFPB took a year ago under Director Kathy Kraninger finding that certain earned wage access (EWA) products are not “credit” under the Truth in Lending Act. These actions and the legal reasoning underlying them have the potential to open up huge loopholes in our lending and even fair lending laws.

We urge the CFPB to regulate fee-based EWA products as credit.